First Federal Bank merger is approved and a $2.5 million loan program is finalized

Federal regulators have approved the merger of Inter-State Federal Savings and Loan of Kansas City into First Federal Bank of Kansas City.

“We’ve wanted a stronger presence in other areas of the KC metro, and the merger will allow us to bring a lineup of new deposit and home loan products to individuals and families in these communities,” Clarence Zugelter, chairman of First Federal, said in an announcement Wednesday.

First Federal also said it reached a final agreement with two local coalitions to provide a $2.5 million home loan program that includes loan subsidies, financial education and money to rehabilitate vacant and blighted properties.

The bank reached the agreement last month with the Concerned Clergy Coalition of Kansas City and the Historic East Neighborhoods Coalition of Kansas City. They had complained of redlining to the U.S. Department of Housing and Urban Development, which mediated the agreement.

With the merger, First Federal Bank has $650 million in assets and operates 11 area branches.

This story was originally published March 23, 2016 at 10:50 AM with the headline "First Federal Bank merger is approved and a $2.5 million loan program is finalized."